FROM OUR BLOG
There is no doubt that the global Covid-19 pandemic is here to stay for the foreseeable future. What was originally viewed by many as “just another flu” is now being taken very seriously by UK residents and businesses alike. Coronavirus or Covid-19 as it is also known, is due to impact an unprecedented number of global businesses both small and globally, with business experts unable to put a figure on how much the uk economy will suffer.
UK Businesses alone are expected to lose billions over the course of 2020 with unemployment rates also expected to rise drastically.
Will Coronavirus cause another recession?
It is very possible, and the reason for that is the number of different markets and industries that are affected by this disease outbreak. Hospitality, retail, travel and service industries are expected to be severely impacted by the global outbreak with a number of flight restrictions being placed on a number of locations.
Airline companies are having to cancel a number of flights around the world due to how contagious Covid-19 is. Not only that, individuals are also reluctant to appear in public spaces where there is a risk of coming into contact with someone that has the virus. For business owners of bars, restaurants and anything else hospitality related this will have a huge impact as those businesses rely on footfall through their front door in order to generate business.
With the recent advice that the government has issued, to stay away from bars and clubs, this will also add to the huge downturn in individuals going to these types of places.
Many people assume that the main industries that are to be hit are the travel and hospitality industries, however this is not the case, it goes much further than that. The retail industry, which is accountable for a huge percentage of the UK economy will be hugely hit, as the majority of this industry relies of physical footfall in order to generate business. This also applies to hairdresses, barbers, beauty salons and gyms.
Other industries that are set to be hugely affected include the recruitment industry as there is due to be a huge number of jobs cut. The building industry is again in for another tough time due to unemployment and uncertainty in their employment status and whether or not they have to take a reduced salary.
Coronavirus and Unemployment
There will be job losses, that is clear and evident to see. Unfortunately when any business experiences a huge downturn in business, the first to feel the wrath of this is more often than not, the employees. With businesses no longer being able to generate an income in order to cover their costs such as rent and wages, staff will be asked to either take unpaid leave or will be made redundant altogether.
Some businesses are also temporarily closing and as a result putting a hold on wages. With more and more employers now asking their workforce to work from home, this no doubt signals a huge shift in the governments first approach which was “business as usual”
As many different industries go hand in hand there is no restriction as to how many businesses will be affected by the global pandemic, particularly those that count on footfall.
For people that will be made unemployed by the coronavirus outbreak, the UK government also announced a freeze on loan and mortgage repayments in order to ease the financial burden.
What to do if you are financially impacted by Coronavirus?
If you have recently been made unemployed the first thing to do is to follow the governments guidelines and ensure that you negotiate a rental/mortgage payment break. The government have stated that these payment breaks will last for a minimum of 3 months. Although there is no guarantee that that Covid-19 will have cleared by then, the 3 month break could prove a vital lifeline.
Many direct lenders and even short term lenders such as paydaypixie.co.uk have also issued a pause on a number of loan repayments to help with cash flow.
Stay positive, remember that you are not in this alone, the whole world is in this together.
Written by: tabrez
Credit has become an important part of everyday lives of individual as it plays an important role in helping you live a comfortable and financially independent life. Whether you need to borrow loan, or take credit cards or any other financial transactions, you will need to have a good credit rating for getting everything that you want for your life. It’s no secret that individuals with a better credit rating are often provided with better interest rates on mortgages, loans and credit cards. Not only that, they will also find it easier to gain the trust of banks and financial institutions when it comes to borrowing money.
Therefore, it is important that you use credit responsibly so that there are no major impacts on your financial power. Additionally, you will need to look for ways of improving your credit so that you will qualify for loans and credit cards that you will need later in life. If you want to avoid any kind of financial problem it is important for you to find out what is the importance of a good credit rating? Your credit score is a demonstration of your history of paying off your debts to the entities that lends you money. Whether you need a loan in future or want to make big purchase, you will need to make sure that your credit score is good.
The relationship between a good credit score and borrowing money
A good credit rating means that you will be able to borrow almost any amount of money for a loan from any bank, financial institutions or public debt market. This means, if your credit score is better, you will have a higher chance of getting a larger amount of money without any kind of issues. But having a bad credit score means that banks might reject your loan application and your ability of obtaining a mortgage or credit will be impacted significantly. Whether you need a loan for expanding your business or to see you through to your next payday, it is important that you get loans easily and this can be accomplished by having a good credit score.
Every single UK direct lender will carry out a credit check to assess your affordability when you are applying for a loan. Some direct lenders such as Lucky Loans will only carry out a soft credit check, however a soft credit check can be just as important!
Therefore, you need to know the importance of a good credit score because it is an important financial tool that helps you live a comfortable life. You will get easier loan approvals as your loan application by the bank will be approved quickly due to your clean credit score, which will not present any sort of risk to the bank.
Moreover, you will also enjoy the benefits of paying a lower rate of interest because people with good credit scores are considerably favoured over individuals with a bad credit score. This will help you save a considerable amount of money on your loan amount and hence you should strive to improve your credit score rating for a large number of benefits.
What is a credit score?
A Credit score is a number that is used to measure your overall creditworthiness; this is what lenders look at when deciding whether or not to offer you a loan. This also means that the lenders will predict the risks of lending you money so that they can get back the loan amount within the stipulated period.
Having good credit score also offers you the opportunity of getting premium credit cards easily like the travel reward credit cards that offer lucrative rewards. These cards are issued only after assessing the credit rating of an individual and with good credit rating; you will enjoy benefits like high credit limits, lounge access and annual travel credits.
There are different ways of maintaining or improving your credit rating so that you will enjoy a host of benefits and the most important way is to make loan payments at the right time and correct amount.
It is important that you select the financial companies carefully because it can also have a major impact of your credit score. A good credit score also offers you more power for negotiating a lower interest rate for a new loan or credit card when you apply.
Overall, it is highly important to maintain a good credit score as there will be a number of times throughout your life in which your credit score will be looked at. Whether it is applying for a mortgage, or applying for a loan. Your credit score can even be looked at by potential employers to establish whether you have any outstanding debts, CCJ’s or bankruptcy.
To check your credit score and to find a number of financial products and recommendations designed to help you improve your credit score, clearscore offer a free to use credit report.
When you own a business, there are just two ways that you can make it a profitable one. The first way that you could do that would be to increase the sales. This would usually be the side of the equation that will get all of the attention. Increasing the sales, however, is not exactly 100% in your control. This would also be where you would save a lot of money. You will be cutting costs, and you will also spend less, and this will end up adding to the bottom line. If you do this, you will not even need to be laying off the staff or even cut down on customer’s experiences.
We actually had a conversation with some small business owners all over the country how they all saved money in the business, and they were rewarded us with some really good ideas which we really liked, and I have listed them out here.
- Make sure that you track prices, and you should also buy in bulk. Tech entrepreneurs and contributors told us how to save money on many things like office equipment like pens, paper and computers as well.
- Do all of the content marketing yourself. When you have slightly more money, you should consider making yourself the expert in the content marketing strategy. You should make sure that you start with experts in your industry and then you should look through the industry publications and then interview them through mail or phone. If you do not think you are a good writer, you should consider curating some articles from the industry.
- Make sure that you turn off all the lights and also that you unplug all of the appliances in the night when no one is working. Start conserving electricity and make sure that you save water as well. These are some basic things that you should already know, and if you have employees who are not following that, you should just go ahead and fire them! I’m kidding; you should let them know about the initiative that you have taken and make sure that you follow them.
- It would be best if you also negotiated with all of your suppliers. Make sure that you try not to be too cheap but see that you can get good prices.
- You should also make use of all the original equipments from the manufacturer’s products. You should shop around for the best quality products and then see if they are comparable to the original.
- Make sure that you cancel unnecessary and recurring services which you absolutely do not need.
- Install solar panels; you will save on bills.
If you are someone who wants to have a successful business, there are some things that you will have to do, and these are things that you will have to do and some more things that you will have to follow. You should make sure that you span a very wide range of industries which will include finance, marketing and all kinds of entrepreneurship as well. No matter how much you end up trying to be the best businessman, there will always be some qualities that, if you do not have or if you do not acquire, you will see that you will not be able to become the best indeed. The qualities of a great businessman are so many, and from time to time, they can actually be a little different from one person to another. There is a basis which would need to be the same for every single businessperson out there. I will list out those things in this guide.
- It would be best if you were an individual who will take risks. It would help if you were not too scared to take some risks that would possibly propel you into a very bright future. Well, surely there will be some uncertainties, but you should know that these uncertainties would be there with almost everything in life. That is why you need to be absolutely okay with taking risks that could benefit you. A good businessman knows what kind of risks he has to take and when and he takes them. Sometimes they work out for the better.
- He should have the necessary leadership skills which would help his entire team. This would be one of the most important qualities that a businessman should have because some people would be depending on them for their leadership, and they should be good ones indeed.
- Make sure that you work on your communication skills. It does not matter how great your ideas are if you do not find a good way to communicate them with your team and your clients. If you cannot communicate your ideas, they would be stuck in you without anyone to help you act on them.
- You should always take initiative. This would be a way to run your business successfully. You should make sure that you take the initiative to be great at things in the business and even if you are not, you should make sure that you try your best to make things way better.
- All of your employees and employers must know that they can rely on you no matter what. It would be best if you were a reliable individual and they should be glad that they can come to you for things.